The pair might continue moving down.

On the 4-hour chart, after a sharp decline, the price broke down the level of 121.36 (23.6% correction) and might continue declining to the levels of 120.70 (0.0% correction) and 120.40 (61.8% correction for the medium-term trend). The price would start moving up after the consolidation above the level of 121.36. In this case, targets would be the levels of 121.77 (38.2% correction), 122.10 (50.0% correction) and 122.43 (61.8% correction).

On the daily chart, the pair has almost reached the level of 121.00 (50.0% correction) the breakdown of which allows the price to decline further, to the level of 120.40 (61.8% correction), to the crossover with the 38.2% arc. From this area a growth is likely to resume.

Trading tips

Short positions can be opened below the level of 121.00 with targets at 120.70, 120.40 and stop-loss at 121.20.

Alternative scenario

Long positions can be opened after the breakout of the level of 121.36 with targets at 121.77, 122.10 and stop-loss at 121.10.

USD/JPY: Fibonacci analysis

USD/JPY: Fibonacci analysis

 




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